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Aid, Structural Change and the Private Sector in Africa

  • Page, John
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    This paper argues that official development assistance (foreign aid) is partly responsible for the lack of structural change in Africa. Africa.s development partners have devoted too few resources and too little attention to two critical constraints to private investment, infrastructure and skills, focusing instead on easily understood, but potentially low impact regulatory reforms. A new aid strategy, one that catalyses private investment in high value added sectors, is needed. Support for strategic interventions to push non-traditional exports, support industrial agglomerations, build firm capabilities, and strengthen regional integration should anchor a new donor agenda to create good jobs and sustain growth.

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    File URL: http://www.wider.unu.edu/stc/repec/pdfs/wp2012/wp2012-021.pdf
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    Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number UNU-WIDER Research Paper WP2012/21.

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    Length: 24
    Date of creation: 2012
    Date of revision:
    Handle: RePEc:unu:wpaper:wp2012-21
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    1. Augustin Kwasi Fosu, 2011. "Growth, Inequality, and Poverty Reduction in Developing Countries: Recent Global Evidence," CSAE Working Paper Series 2011-07, Centre for the Study of African Economies, University of Oxford.
    2. Thomas Farole, 2011. "Special Economic Zones in Africa : Comparing Performance and Learning from Global Experience," World Bank Publications, The World Bank, number 2268.
    3. Keijiro Otsuka & Tetsushi Sonobe, 2011. "A Cluster-Based Industrial Development Policy for Low-Income Countries," GRIPS Discussion Papers 11-09, National Graduate Institute for Policy Studies.
    4. Taye Mengistae & Catherine Pattillo, 2004. "Export Orientation and Productivity in Sub-Saharan Africa," IMF Staff Papers, Palgrave Macmillan, vol. 51(2), pages 6.
    5. Yoshino, Yutaka, 2008. "Domestic constraints, firm characteristics, and geographical diversification of firm-level manufacturing exports in Africa," Policy Research Working Paper Series 4575, The World Bank.
    6. Roberto Chang & Linda Kaltani & Norman Loayza, 2005. "Openness can be good for Growth: The Role of Policy Complementarities," DEGIT Conference Papers c010_021, DEGIT, Dynamics, Economic Growth, and International Trade.
    7. Jorge Saba Arbache & John Page, 2010. "How Fragile Is Africa's Recent Growth?," Journal of African Economies, Centre for the Study of African Economies (CSAE), vol. 19(1), pages 1-24, January.
    8. Clarke, George R.G., 2005. "Beyond tariffs and quotas : why don't African manufacturers export more?," Policy Research Working Paper Series 3617, The World Bank.
    9. Freund, Caroline & Bolaky, Bineswaree, 2008. "Trade, regulations, and income," Journal of Development Economics, Elsevier, vol. 87(2), pages 309-321, October.
    10. Gamberoni, Elisa & Newfarmer, Richard, 2009. "Aid for trade : matching potential demand and supply," Policy Research Working Paper Series 4991, The World Bank.
    11. Alessandro Nicita & Marcelo Olarreaga, 2007. "Trade, Production, and Protection Database, 1976--2004," World Bank Economic Review, World Bank Group, vol. 21(1), pages 165-171.
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